Ravsten Company uses a job order costing system On January 1, the beginning of the current year, the companys inventory balances were as follows Raw materials $ 18,000 Work in process $ 10,800 Finished goods $ 30,400 The company applies overhead cost to jobs on the basis of machine hours For the current year, the company estimated that it would work 36,400 machine hours and incur $161,980 in manufacturing overhead cost The following transactions were recorded for the year Raw materials were purchased on account $208,000 Raw materials were requisitioned for use in production $194,000 (80 direct and 20 indirect) The following costs were incurred for employee services Direct labour $ 163,200 Indirect labour $ 27,800 Sales commissions $ 37,200 Administrative salaries $ 81,600 Heat, power, and water costs were incurred in the factory $43,800 Prepaid insurance expired during the year $12,000 (85 relates to factory operations, and 15 relates to selling and administrative activities) Advertising costs were incurred, $52,000 Depreciation was recorded for the year $62,400 (90 relates to factory operations, and 10 relates to selling and administrative activities) Manufacturing overhead cost was applied to production The company recorded 40,800 machine hours for the year Goods that cost $497,600 to manufacture according to their job cost sheets were transferred to the finished goods warehouse Sales for the year totalled $718,600 and were all on account The total cost to manufacture these goods according to their job cost sheets was $491,800 3 b Prepare a journal entry to properly dispose of any balance in the Manufacturing Overhead account (Do not round intermediate calculations and round your final answers to 2 decimal places If no entry is required for a transaction event, select No journal entry required in the first account field ) X Answer is complete but not entirely correct No Event General Journal Debit Credit A 1 Manufacturing overhead 4,800 00 Work in process OOOO Finished goods Cost of goods sold 116 73 X 321 09 x 4,362 18 X 4 Prepare an income statement for the year (Do not round intermediate calculations and round your final answers to nearest whole dollar amount ) X Answer is complete but not entirely correct RAVSTEN COMPANY

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Ravsten Company uses a job-order costing system. On January 1, the beginning of the current year, the companys inventory balances were as follows: Raw materials

Ravsten Company uses a job-order costing system. On January 1, the beginning of the current year, the companys inventory balances were as follows:


Raw materials	$	18,000
Work in process	$	10,800
Finished goods	$	30,400

The company applies overhead cost to jobs on the basis of machine-hours. For the current year, the company estimated that it would work 36,400 machine-hours and incur $161,980 in manufacturing overhead cost. The following transactions were recorded for the year:

Raw materials were purchased on account: $208,000.
Raw materials were requisitioned for use in production: $194,000 (80% direct and 20% indirect).
The following costs were incurred for employee services:


Direct labour	$	163,200
Indirect labour	$	27,800
Sales commissions	$	37,200
Administrative salaries	$	81,600

Heat, power, and water costs were incurred in the factory: $43,800.
Prepaid insurance expired during the year: $12,000 (85% relates to factory operations, and 15% relates to selling and administrative activities).
Advertising costs were incurred, $52,000.
Depreciation was recorded for the year: $62,400 (90% relates to factory operations, and 10% relates to selling and administrative activities).
Manufacturing overhead cost was applied to production. The company recorded 40,800 machine-hours for the year.
Goods that cost $497,600 to manufacture according to their job cost sheets were transferred to the finished goods warehouse.
Sales for the year totalled $718,600 and were all on account. The total cost to manufacture these goods according to their job cost sheets was $491,800.

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3-b. Prepare a journal entry to properly dispose of any balance in the Manufacturing Overhead account. (Do not round intermediate calculations and round your final answers to 2 decimal places. If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) X Answer is complete but not entirely correct. No Event General Journal Debit Credit A 1 Manufacturing overhead 4,800.00 Work in process OOOO Finished goods Cost of goods sold 116.73 X 321.09 x 4,362.18 X 4. Prepare an income statement for the year. (Do not round intermediate calculations and round your final answers to nearest whole dollar amount.) X Answer is complete but not entirely correct. RAVSTEN COMPANY